State Codes and Statutes

Statutes > Kentucky > 154-31 > 010

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Page 1 of 2 154.31-010 Definitions for subchapter. As used in this subchapter: <br>(1) &quot;Agreement&quot; means an agreement entered into pursuant to KRS 154.31-030 between the authority and an approved company; (2) &quot;Approved company&quot; means an eligible company that has received approval from the authority for a sales and use tax incentive under this subchapter; (3) &quot;Approved recovery amount&quot; means the maximum sales and use tax incentive recoverable by an approved company as established in the agreement; (4) &quot;Authority&quot; means the Kentucky Economic Development Finance Authority; <br>(5) &quot;Department&quot; means the Department of Revenue; <br>(6) &quot;Economic development project&quot; means: (a) 1. The acquisition or construction of a new facility; or 2. The expansion or rehabilitation of an existing facility; and (b) The installation and equipping of the facility; by an eligible company at a specific site in the Commonwealth to be used in a <br>service or technology, manufacturing, or tourism attraction activity conducted by <br>the approved company; (7) &quot;Electronic processing&quot; means the use of technology having electronic, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities, now in <br>existence or later developed to perform a service or technology activity; (8) (a) &quot;Eligible company&quot; means any corporation, limited liability company, partnership, limited partnership, sole proprietorship, business trust, or other <br>legal entity that is primarily engaged in manufacturing or service or <br>technology activities, or in operating or developing a tourism attraction. (b) &quot;Eligible company&quot; does not include any company whose primary activity is retail sales; (9) &quot;Eligible expenses&quot; means the amount expended for: (a) Building and construction materials permanently incorporated as an improvement to real property as part of an economic development project; or (b) Equipment used for research and development or electronic processing at an economic development project; if the Kentucky sales and use tax imposed by KRS Chapter 139 is paid on the <br>purchase of the materials or equipment at the time of purchase; (10) (a) &quot;Equipment&quot; means tangible personal property which is subject to depreciation under Sections 167 and 168 of the Internal Revenue Code, <br>including assets which are expensed under Section 179 of the Internal <br>Revenue Code, and that is used in the operation of a business. (b) &quot;Equipment&quot; does not include any tangible personal property used to maintain, restore, mend, or repair machinery or equipment, consumable <br>operating supplies, office supplies, or maintenance supplies; Page 2 of 2 (11) (a) &quot;Manufacturing&quot; means to make, assemble, process, produce, or perform any activity that changes the form or conditions of raw materials and other <br>property, and shall include any ancillary activity to the manufacturing process, <br>such as storage, warehousing, distribution, and related office facilities. (b) &quot;Manufacturing&quot; does not include any activity involving the performance of work classified by the divisions, including successor divisions, of mining in <br>accordance with the &quot;North American Industry Classification System,&quot; as <br>revised by the United States Office of Management and Budget from time to <br>time, or any successor publication; (12) &quot;Project term&quot; means the time for which an agreement shall be in effect. The project term shall be established in the agreement and shall not exceed seven (7) years; (13) (a) &quot;Research and development&quot; means experimental or laboratory activity that has as its ultimate goal the development of new products, the improvement of <br>existing products, the development of new uses for existing products, or the <br>development or improvement of methods for producing products. (b) &quot;Research and development&quot; does not include testing or inspection of materials or products for quality control purposes, efficiency surveys, <br>management studies, consumer surveys or other market research, advertising <br>or promotional activities, or research in connection with literary, historical, or <br>similar projects; and (14) &quot;Service or technology&quot; means any nonretail activity using technology or providing a service, including but not limited to: <br>(a) Administration and processing activities; <br>(b) Research and development; <br>(c) Telephone or Internet sales or services; <br>(d) Distribution or fulfillment of orders; <br>(e) Data processing; and <br>(f) Similar activities; provided to customer or affiliate entities primarily outside the Commonwealth and <br>designed to serve a multistate, national, or international market. Effective: June 26, 2009 <br>History: Created 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 20, effective June 26, 2009.

State Codes and Statutes

Statutes > Kentucky > 154-31 > 010

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Page 1 of 2 154.31-010 Definitions for subchapter. As used in this subchapter: <br>(1) &quot;Agreement&quot; means an agreement entered into pursuant to KRS 154.31-030 between the authority and an approved company; (2) &quot;Approved company&quot; means an eligible company that has received approval from the authority for a sales and use tax incentive under this subchapter; (3) &quot;Approved recovery amount&quot; means the maximum sales and use tax incentive recoverable by an approved company as established in the agreement; (4) &quot;Authority&quot; means the Kentucky Economic Development Finance Authority; <br>(5) &quot;Department&quot; means the Department of Revenue; <br>(6) &quot;Economic development project&quot; means: (a) 1. The acquisition or construction of a new facility; or 2. The expansion or rehabilitation of an existing facility; and (b) The installation and equipping of the facility; by an eligible company at a specific site in the Commonwealth to be used in a <br>service or technology, manufacturing, or tourism attraction activity conducted by <br>the approved company; (7) &quot;Electronic processing&quot; means the use of technology having electronic, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities, now in <br>existence or later developed to perform a service or technology activity; (8) (a) &quot;Eligible company&quot; means any corporation, limited liability company, partnership, limited partnership, sole proprietorship, business trust, or other <br>legal entity that is primarily engaged in manufacturing or service or <br>technology activities, or in operating or developing a tourism attraction. (b) &quot;Eligible company&quot; does not include any company whose primary activity is retail sales; (9) &quot;Eligible expenses&quot; means the amount expended for: (a) Building and construction materials permanently incorporated as an improvement to real property as part of an economic development project; or (b) Equipment used for research and development or electronic processing at an economic development project; if the Kentucky sales and use tax imposed by KRS Chapter 139 is paid on the <br>purchase of the materials or equipment at the time of purchase; (10) (a) &quot;Equipment&quot; means tangible personal property which is subject to depreciation under Sections 167 and 168 of the Internal Revenue Code, <br>including assets which are expensed under Section 179 of the Internal <br>Revenue Code, and that is used in the operation of a business. (b) &quot;Equipment&quot; does not include any tangible personal property used to maintain, restore, mend, or repair machinery or equipment, consumable <br>operating supplies, office supplies, or maintenance supplies; Page 2 of 2 (11) (a) &quot;Manufacturing&quot; means to make, assemble, process, produce, or perform any activity that changes the form or conditions of raw materials and other <br>property, and shall include any ancillary activity to the manufacturing process, <br>such as storage, warehousing, distribution, and related office facilities. (b) &quot;Manufacturing&quot; does not include any activity involving the performance of work classified by the divisions, including successor divisions, of mining in <br>accordance with the &quot;North American Industry Classification System,&quot; as <br>revised by the United States Office of Management and Budget from time to <br>time, or any successor publication; (12) &quot;Project term&quot; means the time for which an agreement shall be in effect. The project term shall be established in the agreement and shall not exceed seven (7) years; (13) (a) &quot;Research and development&quot; means experimental or laboratory activity that has as its ultimate goal the development of new products, the improvement of <br>existing products, the development of new uses for existing products, or the <br>development or improvement of methods for producing products. (b) &quot;Research and development&quot; does not include testing or inspection of materials or products for quality control purposes, efficiency surveys, <br>management studies, consumer surveys or other market research, advertising <br>or promotional activities, or research in connection with literary, historical, or <br>similar projects; and (14) &quot;Service or technology&quot; means any nonretail activity using technology or providing a service, including but not limited to: <br>(a) Administration and processing activities; <br>(b) Research and development; <br>(c) Telephone or Internet sales or services; <br>(d) Distribution or fulfillment of orders; <br>(e) Data processing; and <br>(f) Similar activities; provided to customer or affiliate entities primarily outside the Commonwealth and <br>designed to serve a multistate, national, or international market. Effective: June 26, 2009 <br>History: Created 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 20, effective June 26, 2009.

State Codes and Statutes

State Codes and Statutes

Statutes > Kentucky > 154-31 > 010

Download pdf
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Page 1 of 2 154.31-010 Definitions for subchapter. As used in this subchapter: <br>(1) &quot;Agreement&quot; means an agreement entered into pursuant to KRS 154.31-030 between the authority and an approved company; (2) &quot;Approved company&quot; means an eligible company that has received approval from the authority for a sales and use tax incentive under this subchapter; (3) &quot;Approved recovery amount&quot; means the maximum sales and use tax incentive recoverable by an approved company as established in the agreement; (4) &quot;Authority&quot; means the Kentucky Economic Development Finance Authority; <br>(5) &quot;Department&quot; means the Department of Revenue; <br>(6) &quot;Economic development project&quot; means: (a) 1. The acquisition or construction of a new facility; or 2. The expansion or rehabilitation of an existing facility; and (b) The installation and equipping of the facility; by an eligible company at a specific site in the Commonwealth to be used in a <br>service or technology, manufacturing, or tourism attraction activity conducted by <br>the approved company; (7) &quot;Electronic processing&quot; means the use of technology having electronic, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities, now in <br>existence or later developed to perform a service or technology activity; (8) (a) &quot;Eligible company&quot; means any corporation, limited liability company, partnership, limited partnership, sole proprietorship, business trust, or other <br>legal entity that is primarily engaged in manufacturing or service or <br>technology activities, or in operating or developing a tourism attraction. (b) &quot;Eligible company&quot; does not include any company whose primary activity is retail sales; (9) &quot;Eligible expenses&quot; means the amount expended for: (a) Building and construction materials permanently incorporated as an improvement to real property as part of an economic development project; or (b) Equipment used for research and development or electronic processing at an economic development project; if the Kentucky sales and use tax imposed by KRS Chapter 139 is paid on the <br>purchase of the materials or equipment at the time of purchase; (10) (a) &quot;Equipment&quot; means tangible personal property which is subject to depreciation under Sections 167 and 168 of the Internal Revenue Code, <br>including assets which are expensed under Section 179 of the Internal <br>Revenue Code, and that is used in the operation of a business. (b) &quot;Equipment&quot; does not include any tangible personal property used to maintain, restore, mend, or repair machinery or equipment, consumable <br>operating supplies, office supplies, or maintenance supplies; Page 2 of 2 (11) (a) &quot;Manufacturing&quot; means to make, assemble, process, produce, or perform any activity that changes the form or conditions of raw materials and other <br>property, and shall include any ancillary activity to the manufacturing process, <br>such as storage, warehousing, distribution, and related office facilities. (b) &quot;Manufacturing&quot; does not include any activity involving the performance of work classified by the divisions, including successor divisions, of mining in <br>accordance with the &quot;North American Industry Classification System,&quot; as <br>revised by the United States Office of Management and Budget from time to <br>time, or any successor publication; (12) &quot;Project term&quot; means the time for which an agreement shall be in effect. The project term shall be established in the agreement and shall not exceed seven (7) years; (13) (a) &quot;Research and development&quot; means experimental or laboratory activity that has as its ultimate goal the development of new products, the improvement of <br>existing products, the development of new uses for existing products, or the <br>development or improvement of methods for producing products. (b) &quot;Research and development&quot; does not include testing or inspection of materials or products for quality control purposes, efficiency surveys, <br>management studies, consumer surveys or other market research, advertising <br>or promotional activities, or research in connection with literary, historical, or <br>similar projects; and (14) &quot;Service or technology&quot; means any nonretail activity using technology or providing a service, including but not limited to: <br>(a) Administration and processing activities; <br>(b) Research and development; <br>(c) Telephone or Internet sales or services; <br>(d) Distribution or fulfillment of orders; <br>(e) Data processing; and <br>(f) Similar activities; provided to customer or affiliate entities primarily outside the Commonwealth and <br>designed to serve a multistate, national, or international market. Effective: June 26, 2009 <br>History: Created 2009 (1st Extra. Sess.) Ky. Acts ch. 1, sec. 20, effective June 26, 2009.